Home » Quizzes » Accounting principles and concepts » Multiple choice questions (MCQs) quiz Accounting principles and concepts Multiple choice questions (MCQs) quiz Posted in: Accounting principles and concepts (quizzes) By: Rashid Javed | Updated on: August 25th, 2024 /16 ABOUT THIS QUIZChapter: Accounting principles and conceptsQuiz type: Multiple choice questions (MCQs) quizNumber of questions: 16Estimated time required: 7 - 10 minutesYour result will be displayed at the end of the quiz. 1. According to accrual concept of accounting, a business transaction is recorded when: cash is received or paid transaction occurs profit is computed balance sheet is prepared 2. John Marketing Company provides advertising services to an investment company in year A but receives advertising fee in year B. John Marketing Company recognizes this revenue in year A. This action of John Marketing Company is justified by: business entity concept revenue recognition principle economic entity concept going concern concept 3. A company is a going concern if: its balance sheet shows a strong financial position its income statement for the current year shows huge profit there is no evidence that it will cease operations in foreseeable future. it is a public limited company 4. Which accounting concept or principle states that the transactions of a business must be recorded separately from those of its owners or other businesses? materiality concept of accounting time period concept of accounting matching principle of accounting business or economic entity concept of accounting 5. The business or economic entity concept is applicable to: sole proprietorship form of business partnership form of business corporate form of business all of the above 6. Which of the following states that the dollar does not lose its value: going concern concept monetary unit assumption stable dollar value assumption matching principle 7. Which of the following states that a transaction is not recorded in the books of accounts unless it is measurable in terms of money? Matching principle Revenue recognition principle Monetary unit assumption Time period assumption 8. Which one of the following states that the life of a business can be divided into equal time periods? Time period assumption Revenue recognition principle Economic entity concept Accrual concept 9. The revenue is not recognized until it is earned and realized or at least realizable. To which accounting principle/concept this statement belongs? Separate entity concept Revenue recognition principle Going concern concept Conservatism concept 10. Sony, a multinational electronics corporation, rounds dollar amounts in its financial statements to the nearest $1,000. Which accounting principle/concept justifies this action? Realization concept Economic entity concept Materiality concept Historical concept 11. The auditor noticed that the financial statements of Meta Company were missing some footnotes important for users for decision making. This action of the management is a violation of: materiality concept going concern concept economic entity concept full disclosure concept 12. A fixed asset costing $30,000 is depreciated over its estimated useful life of 15 years. This action is related to: matching principle monetary unit assumption full disclosure concept none of the above 13. In certain situations, companies might recognize losses but not gains. This action belongs to: revenue recognition principle monetary unit assumption conservatism principle matching principle 14. Modern Enterprises reported all assets in the balance sheet at current market value. This action is a violation of: materiality concept conservatism concept full disclosure concept cost principle or historical cost concept 15. Which accounting principle or concept allows accountants to ignore other accounting principles or concepts if the amount in question is immaterial? business entity concept conservatism concept materiality concept full disclosure concept 16. Which of the following is taken into account while determining the materiality of an amount? Size of the amount as well as organization Cumulative effect of all immaterial amounts Nature of the amount in question All of the above 0% Restart quiz Next » Help us grow by sharing our content ♡
Very interesting quiz
AM STUDENT I NEED MULTIPLE QUESTION RELATED TO ACCOUNTING ONE
Interesting quiz